Trading With A View

(Tradeview 2017) - Your Risk Appetite Vs My Risk Appetite (on Notion VTec, Dnex)

tradeview
Publish date: Sun, 26 Mar 2017, 10:42 AM
tradeview
0 209
Author of Once Upon A Time In Bursa : The MONEY Equation. A corporate strategist, lawyer & avid investor who has two great passion in life: Financial Markets & Real Estate. A true fundamentalist and financial writer motivated to tip the scale in favour of retail investors. Believe the stock market can be force for good.

Contact for update : tradeview101@gmail.com
Telegram: https://telegram.me/tradeview101
Following Message

Image result for My Risk Appetite Vs Your Risk Appetite

 

 


Dear fellow readers, 

 

 

 
 
Once again, these writings are just my humble highlights (not recommendation), feel free to have some intellectual discourse on this. You can reach me at :
 
 

Telegram channel : https://telegram.me/tradeview101

Website / Blog : http://www.tradeview.my/

Facebook : https://www.facebook.com/tradeview101/

or Email me to sign up as private exclusive subscriber : tradeview101@gmail.com
 
______________________________________________________________________
 
 
 
Readers who have read my articles know that I am quite conservative and careful in my selection of stocks. I will not recklessly call a buy on any shares without due deliberation and in-depth analysis or research. Additionally, I will avoid listening to share tips without substantial basis to justify just for the sake of investing or satisfying my readers.

 


My father have always reminded me when I first started investing, "The market is always there. If you missed the opportunity today, there is many other opportunities in the market. Do not rush into it just because everyone around you is doing so." This simple but poignant advise has always stuck with me all these years. I will admit, it is not easy sticking to this investment philosophy especially if people around you, colleagues, kopitiam customers, uber / grab drivers, pasar aunties and uncles are all sharing with you how much money they made from DataPrep, Dnex, Efficient, IWCity and many others. 
 
 
In fact, "sitting still doing nothing" is one of the hardest thing to do in investment. Even up till this day, I still have problem achieving this. A good example would be Visdynamics and MPI. I remembered we  first called Visdynamics at 22 sens end 2016 and cashed out fully at around 45 sens when I felt the share price is beyond its true fair value. For MPI, we called at RM8.03 in early 2017 and cashed out fully at around 10.30+. Look at the price today for both counters. Spectacular. Sitting still requires huge amount of discipline. But it has a lot do with RISK APPETITE which brings me to the crux of my article. 

Everyone has their own risk appetite. It may be low, medium, high and so on. However it differs from one individual is different from another. In short, it is subjective. Let me share with you through the illustration of a few stocks :

1. Notion VTec

Few months back when it was still around 45 sens, I received information from several parties that Notion will be in the play and TP was RM1. Quickly, we researched and decided against the investment. We felt Notion was too expensive and even if indeed the rebound play thesis came true, I rather put my money with Dufu, LCTH or Visdynamics for that matter instead of Notion. Why? My risk appetite did not allow myself to invest in Notion. Logic and sense prevented me from doing so. Clearly, my risk appetite prevented me from making a windfall. Today, Notion is RM1.26 and overvalued. Did I regret missing out? A bit. However, my funds was securely diverted to other companies which made me good return as well. 

2. Dnex
 
Dnex was one of the favourite penny stock for the past few months. Some banks also initiated coverage on it. The share price moved from 20+ sens to 40 sens today. We first noticed Dnex when it was 26 sens. Oil and gas was rebounding, Vehicle Entry Permit contract, new contract by government etc, the investment thesis looks sound. All seems to be on track. Again, after due research and consideration, we decided to pass on Dnex. We believe Dnex is a case of over optimism as earnings just started to show only plus largely derive from associate contribution which has a fixed timeframe. Mostly, stocks like this always starts out strong then dwindle as time passes on. Hence, to us, the investment thesis while attractive and tempting, my risk appetite did not allow us to proceed with it. 

3. Jack Ma, Alibaba Effect + Loss Making Penny Stocks
 
Due to our conservative position, we issued a gentle cautionary reminder to all readers on telegram and facebook when many were thinking to jump on the bandwagon of rallying penny stocks with the "Jack Ma, Alibaba Theme" promoted by operators from last week. Many of these counters were loss making. True enough, the next day after our warning (Friday), many of these shares plunge and many retailers were trapped already. The reason we issued a cautionary reminder was because we have seen it over and over again how operators tried to manipulate share price to trick unsuspecting retailers. Additionally, we understood the risk involved. While we can provide the gentle reminder, due to different risk appetite, not everyone will listen. Some have higher risk tolerance and willing to ride along. The excerpt of the gentle reminder on 23rd March (Thursday) when these stocks were being pushed as below. 



 
 
 
Conclusion 

Everyone has their own risk appetite. Some higher than others. Some lower than others. So the question we should all ask ourselves before every investment decision is "whether am I willing to take this risk to put my hard earn money in this counter". If the answer is yes, go ahead and invest. If the answer is no, avoid. If the answer is neither, take a step back to reconsider your position otherwise, just sit still. That way, at least your investments will give you the peace of mind when you go to bed every night.

 
_________________________________________________________________________________
 

Telegram channel : https://telegram.me/tradeview101

Website / Blog : http://www.tradeview.my/

Facebook : https://www.facebook.com/tradeview101/

or Email me at : tradeview101@gmail.com


Food for thought: 


 
 
 

 

 

 

NOTION (0083)DNEX (4456)D&O (7204)
Related Stocks
More articles on Trading With A View
NST Business x Tradeview No.3 - Adam Yeap, Owner of 212 Hospitality and co-founder of Wonderbrew

Created by tradeview | Oct 18, 2021

NST Business x Tradeview No.2 - Muzahid Shah, CEO of SteerQuest Sdn. Bhd.

Created by tradeview | Sep 28, 2021

News Straits Times Business x Tradeview - Sharing Stories of Retail Investors & the Stock Market

Created by tradeview | Sep 15, 2021

Is It Rewarding Being An Author & Writing A Book?

Created by tradeview | Jul 01, 2021

Tradeview (2021) - Peterlabs Holdings Berhad Long Term Value Stock (Update)

Created by tradeview | Jun 01, 2021

Tradeview - Once Upon A Time In Bursa (Launching Of A New Book)

Created by tradeview | May 01, 2021

Tradeview Commentaries - Journalism & Extraordinary Individuals

Created by tradeview | Apr 21, 2021

Tradeview Commentaries - The Glove Surge, A Mirage or A Path To Oasis?

Created by tradeview | Apr 08, 2021

(Tradeview 2021) - iSinar EPF Withdrawals For The Stock Market, One Should Err On The Side of Caution

Created by tradeview | Mar 23, 2021

(Tradeview 2021) - Are Research Analysts' Reports Worth Their Salt?

Created by tradeview | Mar 17, 2021

Discussions
10 people like this. Showing 18 of 18 comments

Tai KT

If you are trader, you will look at the price. if you are investor, you look at the value.

2017-03-26 14:15

Erudite

Thanks for sharing

2017-03-26 22:45

moneySIFU

"The market is always there. If you missed the opportunity today, there is many other opportunities in the market."

This is true statement, don't worry on the missing one, always worry of missing the next one. So, work harder.

2017-03-26 22:48

ckkhen

Better to have profits than losses for those who are risk averse i.e low risk appetite. Nobody becomes poor by taking profits, however little.

2017-03-26 23:08

malaysiakuku

memang market always there... tapi ada orang yang tak sabar-sabar....kesabaran ada asas dalam permainan stok... tanpa itu, mudah kesilapan berlaku secara tidak sengaja.....kalau kamu stock trader, volume dan charting/TA adalah keutamaan... tapi unruk pelabur jangka masa panjang; dividen, nilai dan fundamental adalah asas yang penting untuk pelabur memahami kenapa sesuatu perniagaan atau syarikat dapat menguntungkan pelabur....

2017-03-27 02:24

dusti

Interesting. Anyone can pick stocks nowadays. Good luck all

2017-03-27 10:54

yeohhh

Haha interesting pick-up. Everyone let those penny flies higher =) It will not be too far. More and more NEAR NEAR NEAR.

2017-03-28 01:10

mikee

one have to imagined that this USD$50 billion or at least initial $10 billion from all e-trades permits approvals generate from DFTZ/Alibaba when start in 2018 or early 2019 is COMPULSORY/MUST pass tru DNEX (4456) e-services software platform tat currently been authorized by Gov to integrates with most gov agencies to get each items/goods pass on from shippers to consumers.
Just 1 segment from IT can rake up 1000% folds profits, haven't count others segments like O&G, Hydro Energy, Foreign Workers Permit, VEP and RFID profits.

2017-03-28 02:22

masterkevin212

NOT FORGETTING IDMENSN

2017-03-28 18:32

Kkevin2625

bull market, all become well picker :D

2017-03-28 20:54

jayalbert

If during this bullish market momentum one still has difficulty to reap +ve return, he seriously ought to look at his trading strategy n stock picking techniques

2017-03-28 20:57

Nigel Low

Dnex closing price on 27th March 0.390, last closing to date 0.455

2017-04-09 14:24

kelingman

tradeview stock pick also have short term tp. he also sell when tp reach. if one asked him how he defined TP, its quite amusing, with biz sense LOL. then he buy back again. it was not a truly value investor anyway.. anyone also can be sifu nowadays.. funny.

2017-04-09 15:53

Erudite

very true, nowadays many like to accuse the good writers and promote the lousy goreng ones...better be careful

2017-04-09 16:26

zhangliang

Kelingman, You are new, dunno anything, simply listen to ur fren, then come out and spoil a good writer reputation. That is v bad. Some more only 5 post from you. Dont do things like that. Bad karma

kelingman I notice many counter also commented by tradeview.. the price will up..
tradeview do u do subscription? im new here
15/03/2017 13:49

kelingman my fren told me tradeview claimed he is a value investor but he also always buy share veli frequent.
value investor should hold at least 3-5 yrs ma.. me oso tak tau how true o not leh..
like this how to beli and sell mana ada masa wor
29/03/2017 19:31

2017-04-09 16:43

稻田·* 片片绿青~粒粒芳香

Zhangliang= Jane Zhang?

女神？

2017-04-09 17:13

tradeview

Usually we do not entertain or reply to nonsensical replies but half witted idiots. However, for kelingman who have been talking rubbish and spoiling our reputation for a long time, we will need to address. Please refer to our value investing portfolio which we share to the public with both entry and exit price including all losses and profit documented every month without any manipulation. We are the only group who publicise our call and still share it transparently every month. To date, our value investing portfolio has hit more than 35% YTD exceeding KLCI YTD return of only around 7%. All these are based on our fundamental metrics.

Refer to the link below :

https://klse.i3investor.com/blogs/tradeview/135686.jsp

2017-11-12 16:48

VenFx

I give my support to Tradeview...
Most of his picks are fundamentally strong.

2017-11-12 17:28

Post a Comment